Asian stocks fell Thursday and the yen pushed higher as traders remained skeptical about the Trump administration’s announcement of less harsh measures on Chinese investments.
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded 0.3 percent lower at 10,637.50 as of 6:30 a.m.
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BQ Live
Here’s a quick look at all that could influence equities today.
U.S. Market Check
- U.S. stocks fell to the lowest level since May and Treasuries rallied amid renewed concern that the Trump administration will crack down on Chinese investment.
- The yield on 10-year Treasuries held at 2.83 percent after falling five basis points.
Europe Check
- European stocks ended higher aided by chemical and oil shares, as some buyers weigh U.S. demands for allies to end all imports of Iranian oil by Nov. 4.
X
Asian Cues
- Japan’s Topix index fell 0.6 percent.
- Australia’s S&P/ASX 200 Index lost 0.2 percent.
- South Korea’s Kospi index declined 0.6 percent.
- Futures on Hong Kong’s Hang Seng advanced 0.5 percent.
- S&P 500 futures rose 0.1 percent. The S&P 500 fell 0.9 percent.
Commodity Cues
- Gold gained 0.1 percent to $1,253.66 an ounce.
- West Texas Intermediate crude declined 0.4 percent to $72.50 a barrel in New York after rallying 3.2 percent.
- Brent crude traded 0.1 percent lower at $77.58 a barrel.
Shanghai Exchange
- Steel traded higher; up 2.1 percent.
- Aluminium traded higher for second day; up 0.5 percent.
- Zinc traded higher for second consecutive session; up 2.4 percent.
- Copper extended gains for the second day; up 0.5 percent.
- Rubber logs second day of gains; up 1.4 percent.
Stories You Might Have Missed
- Harley is enduring a third day of attacks on Twitter by Donald Trump.
- Is it too early for fake meat?
- The conspiracy to put Maduro on trial was thwarted last month, and several dozen secret arrests followed.
- Tesla CEO reacts to downbeat Model 3 report in internal email.
- America’s airspace is a finite resource, and the growth of commercial launches like SpaceX has airlines worried.
- Apple, Samsung declare peace in biggest modern tech patent fight
- China's push for more babies is proving costly.
- Facebook payout in Oculus copyright spat cut to $250 Million.
- Vietnam forces Facebook and Google to pick privacy or growth.
- Public will get to see Da Vinci masterpiece that fetched $450 million.
- An alpine Bitcoin bunker wants to be your next Swiss Bank account.
- Welcome to Waltonville, Where the world’s richest family reigns.
- Madison Square Garden explores spinoff of Knicks, Rangers teams.
- Defending champion Germany ruled out of FIFA World Cup.
Here are some key events coming up this week:
- Indonesia monetary policy decision on Thursday.
- U.S. personal spending probably increased in May for a third month, economists forecast ahead of Friday’s data.
- China manufacturing and non-manufacturing PMI are due on Saturday.
Stocks To Watch
- Thyssenkrupp, Tata Steel are said closing in on JV Deal (Reuters).
- Fortis Healthcare to extend deadline for submission of bids.
- Bank of Maharashtra clarified exposure of Rs 96.52 crore to DS Kulkarni.
- Karnataka Bank hiked deposit interest rates by 10 basis points to 7.35 percent across various tenors.
- Mercator arm gets mining lease in Gujarat for 20 years; 23 million barrels of oil to be exploited.
- Talwalkars Lifestyles to be listed on both exchanges from June 29.
- Exide Industries entered into a joint venture with Leclanche SA to build lithium-ion batteries.
- GMR Infra declared as selected bidder for development of a commercial port located at one of strategic nodes of the Vizag. Port will have initial capacity of 16 MT.
Bulk Deals
- Tasty Bite Eatables: Jupiter India acquired 30,000 shares or 1.17 percent equity at Rs 7485 each.
Zee Media Corporation
- Promoter Arm Infra and Utilities Pvt sold 48.36 lakh shares or 1.03 percent equity at Rs 26.1 each.
- JSGG Infra Developers LLP acquired 48.36 lakh shares or 1.03 percent equity at Rs 26.1 each.
Indian ADRs
X
Who’s Meeting Whom
- Eicher Motors to meet White Oak on June 28 and Manulife Asset Management on June 29.
- Endurance Technologies to meet Axis Mutual Fund, Motilal Oswal Mutual Fund and other investors on June 28.
- Aster DM Healthcare to meet investors on June 29.
Insider Trades
- Cosmo Films promoter acquired 15,000 shares on from June 25-26.
- Visaka Industries promoter group acquired 1,700 shares on June 25.
- Man Industries promoter Rameshchandra Mansukhani acquired 17,000 shares on June 26.
- Trident Ltd promoter acquired 39,000 shares on June 26.
(As reported on June 27)
Trading Tweaks
- Nila Infrastructures circuit filter revised to 20 percent.
- Jyothy Laboratories Limited ex date for 1:1 bonus.
- Prabhat Telecoms (India) Limited ex date for 1:5 bonus.
- Gujarat Automotive Gears Ltd. name changed to HIM Teknoforge Ltd.
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Offerings
- Varroc Engineering IPO day 3. Issue subscribed 1.02 times on day 2.
Rupee
- Indian rupee falls to 19-month low on oil scare, trade war worries. It closed at 68.63/$ versus 68.26/$ on Tuesday.
F&O Cues
- Nifty futures end trade at 10673, premium of 2 points.
- Nifty futures add 8.8 lakh shares in open interest.
- Nifty Bank futures shed 0.9 lakh shares in open interest.
- Max open interest for June series at 10,800 Call, open interest at 55.7 lakh.
- Max open interest for June series at 10,600 Put, open interest at 31.6 lakh.
F&O Ban
- In ban: DHFL, JP Assoc, Infibeam, Wockhardt, jain Irrigation
- Out of ban: CG Power, IDBI Bank
Only intraday positions can be taken in stocks which are in F&O ban. There is a penalty in case of a rollover of these intraday positions.
Put-Call Ratio
- Nifty 1.33 from 1.53
- Nifty Bank 0.76 from 0.80
Fund Flows
X
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Brokerage Radar
Goldman Sachs on Fortis Healthcare
- March quarter sales/Ebitda were below expectations.
- Weakness predominantly driven by Hospital business, which saw utilisation decline.
- Focus now shifts to public bidding process.
- Audited results likely in upcoming days.
CLSA on Lemon Tree
- Maintained ‘Buy’ with a price target of Rs 90.
- Improving industry dynamics, operational performance to improve returns.
- Moving towards an asset-light model, as brand gets established in mid-priced segment.
- Highest demand-supply mismatch in mid-priced segment to lead to sustained price hikes.
CLSA on Crompton Greaves Consumer
- Maintained ‘Buy’ with a price target of Rs 305.
- New category additions, increasing distribution reach to drive growth.
- Product innovation and new launches remains key focus area.
- Shift to LED to continue to drive growth in lighting segment.
CLSA on Future Lifestyle
- Maintained ‘Buy’ with a price target of Rs 535.
- Robust expansion plans for Brand Factory and Power brands to drive growth.
- Central stores expected to capture higher share of brands retail in India.
- L Catterton Asia to acquire approximately 10 percent stake through a mix of preferential issue and secondary purchase.
Kotak on Colgate
- Maintained ‘Add’ with a price target of Rs 1,300.
- Company is not regaining any market share lost to Patanjali so far.
- Underlying category volume growth is inching up but at a slow pace.
- Price hikes to take care of input cost inflation trends.
- Expect higher advertising investment on flagship brand in naturals segment.
HSBC on HCL Tech
- Upgraded to ‘Buy’ from ‘Hold’; raised price target to Rs 1,065 from Rs 1,050.
- HCLT is set to grow at a slower pace in 2018-19 compared to top four.
- Discount is now too extreme relative to growth differentials to peers.
- HCL is the cheapest stock in the India IT sector across large and mid caps.
- Investor concerned on long-term outlook for Infra services and over recent purchase.
Motilal Oswal on Tata Communications
- Maintained ‘Buy’ with a price target of Rs 730.
- Strong order funnel to drive growth.
- Expect earnings to start improving from July.
- New growth ventures – ‘innovation business’ to remain slow starter.
- ATM business revenue/Ebitda to improve.
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